An auto body and repair shop is a rewarding business that allows you to interact with customers daily. You get to help them keep their favorite vehicle running smoothly and you get to ensure the family vehicle is safe and reliable. Working with customers and the customer’s property regularly can put your business at risk when problems arise. By setting up the appropriate types of small business insurance you can take steps to minimize potential risks and problems along the way.
General liability is an important type of business insurance coverage that your auto body and repair shop should have. This insurance protects your company if something happens to either your customer’s or their property. For example, if a customer is injured while in your shop, general liability will cover the expenses. If a customer’s vehicle gets damaged while in your repair shop, general liability will pay for those damages.
General liability also provides advertising and product liability protection. If your auto shop prints an advertisement that harms a customer in some way, general liability takes care of those damages. The same applies to products. If you sell a certain type of engine oil enhancer that is later found to be damaging to customer’s engines, general liability covers your customer’s losses.
Business Owners Policy (BOP)
A business owners insurance policy (BOP) includes general liability and adds coverage for your business property and assets. On the property side, a BOP will protect you from losses if something happens to your physical business structures or the contents inside. For example if your auto body repair shop catches on fire, business owners policy would pay the costs of rebuilding your shop. It would also cover the cost of replacing damaged and destroyed equipment such as your power tools, compressor, car lifts and other specialized business equipment.
A business owners policy also protects you from the loss of intangible business assets. If your auto repair shop accepts cash and checks for payment and those accounts receivable funds are lost in a fire, a BOP will cover the financial loss. If you keep customer warranties in paper or digital form and those are damaged, a BOP will cover the cost of repair, reconstruction or replacement.
Other coverage’s can include and are not limited to are Garage Keepers, Portable Tools and Equipment, Garage Liability and Exterior Building Glass.
Commercial auto insurance is imperative for an auto body and repair shop. It can cover auto accidents involving company or personal vehicles as well as those that are rented or loaned. For example, if you must drive a customer’s car to test the brakes, commercial auto insurance may cover the losses if you are in an accident. Business auto insurance covers losses and damages to the vehicles involved, plus medical coverage for the people injured.
Accidents can happen in any job, and they’re particularly common in the auto repair field. A slip of a car jack or wrench can cause injuries that are expensive to treat. By law you are required to carry workers comp insurance for all of your employees. Workers comp pays the employee’s medical bills and related expenses if they are injured on the job.